COMPASS Pathways (NASDAQ:CMPS – Get Free Report) and Evelo Biosciences (NASDAQ:EVLO – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Volatility & Risk
COMPASS Pathways has a beta of 2.48, indicating that its share price is 148% more volatile than the S&P 500. Comparatively, Evelo Biosciences has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for COMPASS Pathways and Evelo Biosciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| COMPASS Pathways | 0 | 0 | 5 | 0 | 3.00 |
| Evelo Biosciences | 0 | 1 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
46.2% of COMPASS Pathways shares are held by institutional investors. Comparatively, 0.3% of Evelo Biosciences shares are held by institutional investors. 24.0% of COMPASS Pathways shares are held by insiders. Comparatively, 1.0% of Evelo Biosciences shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares COMPASS Pathways and Evelo Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| COMPASS Pathways | N/A | -58.72% | -49.46% |
| Evelo Biosciences | N/A | N/A | -189.58% |
Earnings and Valuation
This table compares COMPASS Pathways and Evelo Biosciences’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| COMPASS Pathways | N/A | N/A | -$118.46 million | ($2.39) | -3.62 |
| Evelo Biosciences | N/A | N/A | -$114.53 million | ($13.29) | 0.00 |
COMPASS Pathways is trading at a lower price-to-earnings ratio than Evelo Biosciences, indicating that it is currently the more affordable of the two stocks.
Summary
COMPASS Pathways beats Evelo Biosciences on 8 of the 11 factors compared between the two stocks.
About COMPASS Pathways
COMPASS Pathways plc operates as a mental health care company primarily in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.
About Evelo Biosciences
Evelo Biosciences, Inc., a clinical-stage biotechnology company, focuses on discovering and developing oral medicines that act on immune cells in the small intestine with systemic effects. It is developing EDP1815, a whole-microbe product candidate, which has completed a Phase 2 trial for the treatment of psoriais; and is in Phase 2 clinical trial for the treatment of atopic dermatitis. The company is also developing EDP1867, a non-live pharmaceutical preparation for single strain of Veillonella parvula, which is in Phase 1b clinical trial; EDP2939, an investigational oral biologic for the potential treatment of inflammatory diseases; and EDP1908, a product candidate for oncology. Evelo Biosciences, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.
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